© 2013 aprikot knowledge. All rights reserved
confidential
Wealth Management!
! September 2013,
Manila, PHILIPPINES!
Versio...
ANALYSIS: World Bank – Washington D.C.
§  Financial Analyst
BANKING: BCCI, BNP Paribas & ING Bank
§  Retail, Corporate &...
CLIENTS
RELATIONSHIP
CONNECTIVITY
ACCESSIBILITY
MOBILITY
SOCIAL
ENGAGEMENT
MANAGE
CHANGE
PEOPLE
TECHNOLOGY
TRUST
WHAT IS !
HAPPENING
If Facebook
were a country,
it would b e
the third most
populated
in the world, 
ahead of the
United States. 
If Facebook
...
CHINA	
  
1.3	
  billion	
  
INDIA	
  
1.1	
  billion	
  
USA	
  
300	
  million	
  
Brazil	
  
	
  190	
  million	
  
Fac...
500	
  BILLION.	
  The	
  number	
  of	
  minutes	
  spent	
  on	
  Facebook	
  per	
  month.	
  
Last	
  year,	
  that	
 ...
25	
  BILLION.	
  The	
  amount	
  of	
  content	
  (web	
  links,	
  news	
  stories,	
  blog	
  posts,	
  
notes,	
  pho...
ONE-THIRD. The proportion of women aged 18-34
who check Facebook when they first
wake up—even before going to the bathroom...
That’s more than
DOUBLE last year’s
volume.
800	
  MILLON.	
  People	
  visit	
  YouTube	
  every	
  month.	
  
2	
  BILLION.	
  The	
  number	
  of	
  YouTube	
  Videos	
  viewed	
  per	
  day.	
  
That’s	
  twice	
  as	
  many	
  as...
More videos were uploaded on
You Tube in the last 2 months
than all the videos on since
1948.
That’s	
  13X	
  more	
  than	
  the	
  LIBRARY	
  of	
  CONGRESS	
  
NINETY-FIVE.The percentage of companies using LinkedIn
to find and attract employees.
59% use Facebook and 42% use Twitter...
1 in 6.The number of marriages last year between
people who met through social media.
THAT’S MORE THAN TWICE THE NUMBER OF...
THESE WERE ALL
SOCIAL MEDIA
COMPANIES.
WHAT HAVE
THEY DONE ?!
WHAT ABOUT
DIGITAL
COMPANIES ?
DIGITAL COMPANIES - ENTERTAINMENT
www.momenta.biz - 30
Online	
  Money	
  Transfer	
  (2000,	
  
USA)	
  
Oct	
  2002	
  >...
DIGITAL COMPANIES - ENTERTAINMENT
www.momenta.biz - 31
Image	
  &	
  Video	
  Sharing	
  (2004,	
  Canada)	
  
§  51	
  m...
DIGITAL COMPANIES - ENTERTAINMENT
www.momenta.biz - 32
Twitter
How	
  140	
  characters	
  changed	
  the	
  
world	
  
So...
www.momenta.biz - 33
ALL THESE COMPANIES ARE
REACHING YOUR CUSTOMERS
DIRECTLY AND ALSO BUILDING
RELATIONSHIP.
RELATIONSHIP...
A. Technology
 B. Chemicals
 C. Automotive
 D. Media
 E. Banks
F. Consumer Health
Care
G. Consumer
Electronics
H. Energy
 ...
A. Technology
 B. Chemicals
 C. Automotive
 D. Media
 E. Banks
F. Consumer Health Care
 G. Consumer Electronics
 H. Energy...
FINANCIAL'SERVICES'INDUSTRY'FINDINGS'
Edelman's 13th Annual survey
37
GLOBAL	
  
ONLINE	
  SURVEY	
  	
  
IN	
  26	
  COUNTRIES	
  
•  31,000+	
  respondents	
 ...
banking & financial services Industry – are least trusted
38
TRUST IN INDUSTRIES GLOBALLY
Source:	
  Edelman's	
  13th	
  A...
39
Financial SERVICES is at the
bottom. People don’t trust us,
as much.
WHO is RESPONSIBLE?
WE
Financial Services Industry
40
DEVELOPED MARKET VS EMERGING MARKETS
Industry Average
Sectors
Drilling down further, Asia is most trusting and EU is least trusting of financial
service sector 
41
TRUST IN FINANCIAL SE...
Copyright © EON Inc. and Ateneo Graduate School of Business 2013 Read more at www.eon.com.ph/philippinetrustindex
Healthca...
THE MESSAGE IS SIMPLE !
§  Trust has been lost and the digital world is here.
§  The Technology Sector - Two issues – (1...
Trust has been lost and the digital world
is taking over.
www.aprikot.biz - 45
ZERO MOMENT OF TRUTH
Traditional Purchase Process
Traditionally, there have been three critical junctures within a customer’s
purchase process ...
www.aprikot.biz - 47
s
New Paradigm
www.aprikot.biz - 49
www.aprikot.biz - 50
Mobile	
  Phone	
  Example	
  
www.aprikot.biz - 51
Google
37%
31%
29%
28%
27%
24%
23%
22%
22%
21%
18%
50%
49%
38%
36%
31%
22%
22%
18%
41%
37%
33%
30%
20%
19%
SawadsonTV
Rece...
ZMOT
This is a new World
This is the new World of ZMOT
50% 49% 38% 36% 31% 22% 22% 18%
Searched
online 
Talked with
friends /
family
Compared
produ...
HNWI
IN LIQUID FINANCIAL ASSETS
1
.
0
m
USD
IN LIQUID FINANCIAL ASSETS
3
.
9
m
PHP
4
HNWI at RECORD LEVELS
(2012)	
  
North
America
Asia-Pacific
 Europe
 Latin
America
Middle East
 Africa
 Total
Wealth (US$ T...
$12.7Trillion
3.7Million
NorthAmerica!
$12.0Trillion
3.7Million
Asia-Pacific!
$10.9Trillion
3.4Million
Europe!
$7.5T
0.5M
L...
HNWI Population, 2007 -2011 (by Asia Market)
‘000	
  (Thousands)	
  
1517	
  
1366	
  
1650	
   1739	
   1822	
  
412	
  
...
Composition of Asia-Pacific HNWI
Wealth
$11.4 t
Individuals
3.4 m
+$30 m
Ultra-HNWI
$5 - $30 m
Mid-Tier Millionaire
$1 - $5...
Snippets
In	
  associaeon	
  with	
  	
  	
   copyright@aprikot	
  2012	
  
62
45years or younger
Asia-Pacific, 41%
of the...
Who is the Philippines HNW investor?
§  Most HNW individuals are between 31 and 50
years old
§  Credit Suisse Reports fo...
www.aprikot.biz - 64
TonyV3112	
  /	
  Shujerstock.com	
  	
  /	
  *2012	
  Americas’	
  topped;	
  Asia	
  second.	
  
HNW – What do they look for ?
§ HNWI focus on wealth preservation 
§ The preference for a single point of advice and ser...
HNWI Trust & Confidence
§ Wealth Manager competency emerged as the single
largest service priority among HNWIs, with 67.5%...
Asset Allocation
16 2013 WORLD WEALTH REPORT
as their primary focus put 26.4% of their assets into cash,
only slightly les...
Allocation to Investment of Passion
HNWI Behaviors & Preferences, Q1 2013
FIGURE 15. HNWI Behaviors and Preferences, Q1 2013
(%)
Single Firm
I prefer to work ...
Focus on 

Wealth Growth vs Wealth Preservation
years – the MSCI World Index grew by 6.9% annually
compared to their count...
Competency
Single point
Wealth preservation
Wealth advice
So,	
  what	
  are	
  HNWI	
  looking	
  for	
  	
  
WEALTH
MANAGEMENT
What is a
.. more than investment
advice, encompass
person's financial life
WHY Wealth Manager?
The	
  Asia-­‐Pacific	
  HNWI	
  populaeon	
  grew	
  9.7%	
  to	
  3.3	
  million	
  in	
  2010,	
  
e...
Wealth Manager?
…..	
  consetutes	
  unique	
  job	
  tasks	
  and	
  specialized	
  
knowledge	
  and	
  skills	
  differe...
COMPETENCY STANDARDS
for Wealth Managers
A wealth manager’s competencies are encompassed into three distinct layers – 
§ ...
T = 
R + I + C

S.I.
Customers Expectations
www.aprikot.biz - 78
Excellent
Customer
Service!
Transparency!
Objective
Advice!
Professional
Compe...
www.aprikot.biz - 79
ProfessionalCompetence
ObjectiveandQualityAdvice
Excellent Customer Service
Transparency
Wealth 
Advi...
4W
www.aprikot.biz - 80
A framework to find solutions for the client’s needs. Deals with
diverse goals and unique individua...
In	
  today’s	
  context,	
  what	
  is	
  wealth	
  management?	
  
§  “Wealth	
  Management	
  addresses	
  every	
  as...
Advisory Process
Investment Advisory
Process
Risk
Profiling
Recommend
the portfolio
Execute
transactions
Rebalanci
ng
Repor...
Next Generation Financial Advisor, must take on
the role as a Wealth Manager
The next generation wealth manager has a lot ...
Calling all Insurance Advisors
Two problems:
1.  High Net Worth Clients - The banking model with
Wealth Managers & Special...
New Insurance Landscape
§  Regulators world-wide are taking action to ensure customers get better and
more professional fi...
New Insurance Landscape

“rather than training being focused on products, as in the past, it needs to be
more broad based,...
THANK YOU
www.aprikot.biz - 87
Should Insurance Agents become Wealth Managers
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Should Insurance Agents become Wealth Managers

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September 12, 2013. This presentation was delivered to a group of very qualified Insurance Agents at Manila. I wanted them to understand the new changing world, where customers expectation has vastly increased. The digital world is building huge expectations. Suraj

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Should Insurance Agents become Wealth Managers

  1. 1. © 2013 aprikot knowledge. All rights reserved confidential Wealth Management! ! September 2013, Manila, PHILIPPINES! Version  1.0       Do Insurance Advisers need to be Wealth Manager?
  2. 2. ANALYSIS: World Bank – Washington D.C. §  Financial Analyst BANKING: BCCI, BNP Paribas & ING Bank §  Retail, Corporate & Private Banker SECURITIES: Kotak (Goldman JV, India) §  Head of Non-Resident Clients FUND MANAGEMENT: Prudential / Templeton (EastSpring) §  Distribution / Partner Management §  Regional Product (Asia) §  CEO, Singapore, UAE & Malaysia INSURANCE: Prudential (PRULife, Regional HK) §  Regional Head for Banassurance, Asia QUALIFICATION §  MBA, Bcom(Hons), CWM, CFP, CIPM www.aprikot.biz - 2 Please call me SURAJ (su raj) 47 / 24 years
  3. 3. CLIENTS
  4. 4. RELATIONSHIP
  5. 5. CONNECTIVITY
  6. 6. ACCESSIBILITY
  7. 7. MOBILITY
  8. 8. SOCIAL ENGAGEMENT
  9. 9. MANAGE CHANGE
  10. 10. PEOPLE
  11. 11. TECHNOLOGY
  12. 12. TRUST
  13. 13. WHAT IS ! HAPPENING
  14. 14. If Facebook were a country, it would b e the third most populated in the world, ahead of the United States. If Facebook were a country, it would b e the third most populated in the world, ahead of the United States.
  15. 15. CHINA   1.3  billion   INDIA   1.1  billion   USA   300  million   Brazil    190  million   Facebook   500  million   Only  China  &     India  are     more  populated   than     Facebook.  
  16. 16. 500  BILLION.  The  number  of  minutes  spent  on  Facebook  per  month.   Last  year,  that  number  was  only  150  billion.  Today  it’s  500  billion.  
  17. 17. 25  BILLION.  The  amount  of  content  (web  links,  news  stories,  blog  posts,   notes,  photos,  etc.)  shared  each  month  on  Facebook.   That’s  more  than  6X  last  years  volume.  
  18. 18. ONE-THIRD. The proportion of women aged 18-34 who check Facebook when they first wake up—even before going to the bathroom. 13
  19. 19. That’s more than DOUBLE last year’s volume.
  20. 20. 800  MILLON.  People  visit  YouTube  every  month.  
  21. 21. 2  BILLION.  The  number  of  YouTube  Videos  viewed  per  day.   That’s  twice  as  many  as  last  year.  
  22. 22. More videos were uploaded on You Tube in the last 2 months than all the videos on since 1948.
  23. 23. That’s  13X  more  than  the  LIBRARY  of  CONGRESS  
  24. 24. NINETY-FIVE.The percentage of companies using LinkedIn to find and attract employees. 59% use Facebook and 42% use Twitter. 14 LinkedIn
  25. 25. 1 in 6.The number of marriages last year between people who met through social media. THAT’S MORE THAN TWICE THE NUMBER OF PEOPLE WHO MET AT BARS, CLUBS, AND OTHER SOCIAL EVENTS COMBINED. 15
  26. 26. THESE WERE ALL SOCIAL MEDIA COMPANIES.
  27. 27. WHAT HAVE THEY DONE ?!
  28. 28. WHAT ABOUT DIGITAL COMPANIES ?
  29. 29. DIGITAL COMPANIES - ENTERTAINMENT www.momenta.biz - 30 Online  Money  Transfer  (2000,   USA)   Oct  2002  >  acquired  by  ebay  for   US$  1.5  billion   As  of  2012  >  total  payment   volume  exceeds  US$  145  billion;   194  markets;  232  million   accounts.  Customers  can  sent,   receive  and  hold  in  26  currencies   worldwide.   Travel  Website  (2000,  USA);   Discovering  Treasure  on  its  travels   World’s  largest  travel  website  in   over  30  countries;  over  100  million   users;  21  languages.  2011  went   public,  now  listed  on  NASDAQ.   400,000  hotels  and  500,000   restaurants  across  70,000  ciees   worldwide.       TripAdvisor PayPal Online  File  Hoseng  (2007,  USA);   Out-­‐of-­‐the-­‐box  success   October  2011  >>  50  million  users;   Nov  2012  >>  reached  100  million   users.  Dropbox  revenue  exceeded   US$240  million  in  2011.     Dropbox
  30. 30. DIGITAL COMPANIES - ENTERTAINMENT www.momenta.biz - 31 Image  &  Video  Sharing  (2004,  Canada)   §  51  million  registered  users;  80   million  unique  visitors;  6  billion   images.     §  Flickr  is  valued  at  US$  4  billion.   Online  Encyclopedia  (2001,  USA)     §  Not-­‐for-­‐profit  company.   §  Donaeons  >>  2009  US$  8  million,   doubled  in  2010  to  US$16  million;   2011  raised  US$  20  million.   §  Free  to  all.  20  million  arecles  in  282   languages.     Wikipedia Zynga Online  Social  Gaming  (2007,  USA)   Feb  2011  >  $1  billion  venture  capital   funding   Late  2011  >  Zynga’s  games  had  232   million  monthly  users.      
  31. 31. DIGITAL COMPANIES - ENTERTAINMENT www.momenta.biz - 32 Twitter How  140  characters  changed  the   world   Social  Media/microblogging   (2006,  USA)   Mar  2011  >  more  than  140   million  monthly  users   Revenue  >  Twijer    is  expected  to   take  in  $950  million  in  2014   before  vauleng  to  $1.33  billion   the  following  year.  This  year’s   revenues  are  pegged  at  $582.8   million,  a  year-­‐over-­‐year   doubling.   Wonga Short-­‐term  consumer  finance   (2006,  UK)  –  UK,  South  Africa,   Canada  &  Poland.   §  Offers  £400  -­‐  £1,000  for  1-­‐30   days  short  term  loans  >>   money  within  one  hour.   §  Wong  has  approved  over  3.5   million  loans  in  4  years.   §  Focus  on  innovaeon.       Amazon World’s  largest  e-­‐retailer  (1995,   USA)   Started  as  an  online  bookstore,   but  soon  diversified,  selling   DVDs,  VHSs,  CDs,  video  and  MP3   downloads/streaming,  sooware,   video  games,  electronics,   apparel,  furniture,  food,  toys,   and  jewelry.  Cloud  compueng   services.     Customer  base:  +30  million   Sales  –  US$16.1  billion  (2013  1st   Quarter).      
  32. 32. www.momenta.biz - 33 ALL THESE COMPANIES ARE REACHING YOUR CUSTOMERS DIRECTLY AND ALSO BUILDING RELATIONSHIP. RELATIONSHIP THAT IS STRONGER THAN WHAT WE HAVE BUILT.
  33. 33. A. Technology B. Chemicals C. Automotive D. Media E. Banks F. Consumer Health Care G. Consumer Electronics H. Energy I. Food & Beverages J. Aerospace & Defense K. Consumer Goods L. Metals M. Pharmaceutical N. Telecom O. Financial Services P. Brewing & Sprits Q. Food Manufacturing R. Entertainment WHICH ARE THE MOST TRUSTED INDUSTRIES?
  34. 34. A. Technology B. Chemicals C. Automotive D. Media E. Banks F. Consumer Health Care G. Consumer Electronics H. Energy I. Food & Beverages J. Aerospace & Defense K. Consumer Goods L. Metals M. Pharmaceutical N. Telecom O. Financial Services P. Brewing & Sprits Q. Food Manufacturing R. Entertainment Please  indicate  (by  ranking)  how  much  you  TRUST   businesses  in  each  of  the  above  industries.  There   are  18  industries  listed  here  –  rank  them  by  order   of  #1  being  most  TRUSTED  and  #18  least   TRUSTED.     Name:  _________________________________________________________________     TRUSTED  INDUSTRY  
  35. 35. FINANCIAL'SERVICES'INDUSTRY'FINDINGS'
  36. 36. Edelman's 13th Annual survey 37 GLOBAL   ONLINE  SURVEY     IN  26  COUNTRIES   •  31,000+  respondents   •  5  years  in  20+  markets     •  8  years  in  10+  markets     GENERAL  POPULATION   •  1000  respondents  per  country   surveyed   •  Ages  18+   •  2  years  of  data     INFORMED  PUBLICS   •  500  respondents  in  U.S.  and  China  &  200   in  other  countries   •  Ages  25-­‐64   •  College-­‐educated   •  In  top  25%  of  household  income  per  age   group  in  each  country   •  Report  significant  media  consumpeon   and  engagement    in  business  news  and   public  policy   •  13  years  of  data       Source:  Edelman's  13th  Annual  survey  
  37. 37. banking & financial services Industry – are least trusted 38 TRUST IN INDUSTRIES GLOBALLY Source:  Edelman's  13th  Annual  survey   MOST TRUSTED LEAST 65% & above 64 to 60% 59 to 50% Less than 50% Technology     (73%)   Consumer  Electronics   (70%)   Automoeve     (66%)   Food  &  Beverages   (62%)   Aerospace  &  Defense   (62%)   Entertainment     (62%)   Metals  Industry   (61%)   Food  Manufacturing   (61%)   Telecommunicaeon   (60%)   Consumer  Packaged   Goods  (60%)   Pharmaceuecal     (57%)   Energy   (57%)   Consumer  Health   Companies  (55%)   Brewing  &  Sprit   (55%)   Chemicals     (51%)   Media   (50%)   Banks   (49%)   Financial  Services   (46%)  
  38. 38. 39 Financial SERVICES is at the bottom. People don’t trust us, as much. WHO is RESPONSIBLE? WE
  39. 39. Financial Services Industry 40 DEVELOPED MARKET VS EMERGING MARKETS Industry Average Sectors
  40. 40. Drilling down further, Asia is most trusting and EU is least trusting of financial service sector 41 TRUST IN FINANCIAL SERVICES INDUSTRY SECTORS BY REGION Industry Average
  41. 41. Copyright © EON Inc. and Ateneo Graduate School of Business 2013 Read more at www.eon.com.ph/philippinetrustindex Healthcare most trusted industry; trust in mining increased but not enough to pull up its ranking 37.3 25.3 25.3 24.7 24.0 23.7 23.7 22.1 21.8 19.4 18.6 17.5 17.3 16.1 15.8 12.2 8.9 6.2 4.7 Health Care Information Technology Agriculture Water & Sanitation Telecommunications Tourism & Hospitality Food and Beverage Pharmaceuticals Energy & Power Insurance Professional & Technical Services Banks & Financial Services Training & Human Development Construction Transport & Logistics Recreation & Entertainment Real Estate Alcohol & Tobacco Mining N=1200 general public. Very much trust responses. Q: How much or how little do you trust each industry that I will mention? INFORMED Public - URBAN Areas Gainers (%) 1st PTI 2nd PTI Healthcare 22.2 29.3 Agriculture 11.2 16.7 Insurance 7 12 Mining 2.6 4.3 Losers (%) Training 21.6 15 Real estate 10.0 6.7 PHILLIPINES 42
  42. 42. THE MESSAGE IS SIMPLE ! §  Trust has been lost and the digital world is here. §  The Technology Sector - Two issues – (1) Potentially preparing to take away our clients, and (2) building very high client expectations. §  Successful relationships with customers in the digital world are high-trust relationships. §  It is time for financial advisors to rebuild trust at the same time as developing all the communications and analytical advantages of digital technology. There is no other way. §  The highly digitalized, non-bank competitors are already taking the best parts of banking, will soon take other parts of the financial industry. Retail General Insurance is substantially moved to the digital world. Time is short. Is Apple about to join the fray? Is Amazon? Is Facebook? {Or is it the telecom industry?} !
  43. 43. Trust has been lost and the digital world is taking over.
  44. 44. www.aprikot.biz - 45 ZERO MOMENT OF TRUTH
  45. 45. Traditional Purchase Process Traditionally, there have been three critical junctures within a customer’s purchase process where product must be successful: stimulus, shelf, experience   Semulus   This is the moment when an advertisement/ knowledge connects with a consumer in such a way that pushes him or her to visit a start the discussion. Second  Moment   of  Truth   Experience   (Experience) - Once home with the product, the consumer uses it and forms an opinion of his or her purchase.   First  Moment   of  Truth   At  shelf  In-­‐store   The consumer, driven by an advertisement or knowledge, visits your office and the combination of product packaging and salesperson claims, results in a purchase.
  46. 46. www.aprikot.biz - 47
  47. 47. s New Paradigm
  48. 48. www.aprikot.biz - 49
  49. 49. www.aprikot.biz - 50 Mobile  Phone  Example  
  50. 50. www.aprikot.biz - 51
  51. 51. Google 37% 31% 29% 28% 27% 24% 23% 22% 22% 21% 18% 50% 49% 38% 36% 31% 22% 22% 18% 41% 37% 33% 30% 20% 19% SawadsonTV Receivedmailathomefromabrandmanufacturer Sawanadinanewspaper Readnewspaperarticles Readmagazinearticles Sawadsinamagazine Readanemailreceivedfromabrand Noticedadsonline Receivedmailathomefromaretailer WatchedaTVprogramthatfeaturedtheproduct Sawanadonanoutdoorbillboard Searchedonlinewithasearchengine Talkedwithfriends/familyabouttheproduct Comparisonshoppedproductsonline Soughtinformationfromabrand/manufacturerwebsite Readproductreviewsonline Soughtinformationfromaretailerwebsite Readcommentsfollowinganarticleonline Becameafriend/follower/”liked”abrand Lookedattheproductpackageinthestore Readbrochureabouttheproductinthestore Talkedwithasalespersoninthestore Lookedatsignage/displayabouttheproductinthestore Talkedwithacustomerservicereponthephone Triedasampleintheproductinastore SearchingonlineandwordofmouthareamongtopZM Q2Whenyouwereconsideringpurchasing[PRODUCT],whatsourcesofinformationdidyouseekoutto helpwithyourdecision? Base:N=5,003 Source:Google/ShopperSciences,ZeroMomentofMacroStudy,Apr2011 www.google.com/think/insights www.aprikot.biz - 52 Stimulus ZMOT FMOT
  52. 52. ZMOT This is a new World
  53. 53. This is the new World of ZMOT 50% 49% 38% 36% 31% 22% 22% 18% Searched online Talked with friends / family Compared product online Sought info. from manufacturers’ website Read product reviews Sought info. From retailers website Read comments Became friend/ follower/ ’liked’ a brand
  54. 54. HNWI
  55. 55. IN LIQUID FINANCIAL ASSETS 1 . 0 m USD
  56. 56. IN LIQUID FINANCIAL ASSETS 3 . 9 m PHP 4
  57. 57. HNWI at RECORD LEVELS (2012)   North America Asia-Pacific Europe Latin America Middle East Africa Total Wealth (US$ Trillion) 12.7 (11.4) 12.0 (10.7) 10.9 (10.1) 7.5 (7.1) 1.8 (1.7) 1.3 (1.1) 46.2 (42.0) %age Change 2011-12 11.7% 12.2% 8.2% 6.7% 8.6% 11.5% 10.0% Source:  Capgemini  Lorenz  Curve  Analysis,  2013  
  58. 58. $12.7Trillion 3.7Million NorthAmerica! $12.0Trillion 3.7Million Asia-Pacific! $10.9Trillion 3.4Million Europe! $7.5T 0.5M LatinAmerica! $1.3T 0.5M Africa! $1.8T 0.5M MiddleEast! Data  Source:  Capgemini  Lorenz  Curve  Analysis,  2013   World 2011 2012 %é Population 11.0 12.0 9.2% Wealth 42.0 46.2 10.0% Asia-Pacific expected to lead robust Global HNWI Wealth Growth Global HNWI investable wealth is expected to grow to US$55.8 trillion by 2015. Asia-Pacific is expected to reach US$15.9 trillion (by 2015).
  59. 59. HNWI Population, 2007 -2011 (by Asia Market) ‘000  (Thousands)   1517   1366   1650   1739   1822   412   364   477   535   562   169   129   174   193   180   118   105   127   146   144   123   84   127   153   126   78   61   82   99   91   71   58   83   94   89   96   37   76   101   84   44   42   50   58   65   24   19   24   30   32   149   138   154   166   173   0   500   1000   1500   2000   2500   3000   3500   4000   2007   2008   2009   2010   2011   Other Markets Indonesia Thailand Hong Kong Taiwan Singapore India South Korea Australia China Japan 2.8m 2.4m 3.0m 3.3m 3.4m Source:  Capgemini  Lorenz  Curve  Analysis,  2012.                        Note:  Chart  numbers  and  quoted  %ages  may  not  add  up  due  to  rounding.  Philippines  within  “Other  Markets”  
  60. 60. Composition of Asia-Pacific HNWI Wealth $11.4 t Individuals 3.4 m +$30 m Ultra-HNWI $5 - $30 m Mid-Tier Millionaire $1 - $5 m Millionaire Next Door WORLD’S POPULATION OF HNWI FIGURE 1. HNWI Population, 2007 – 2011 (by Region) (Million) 0 2 4 6 8 10 12 20112010200920082007 Asia-Pacific North America Europe Latin America Middle East Africa 1.1% -1.1% 1.6% 5.4% 3.9% 2.7% Global 0.8% % Change Total HNWI Population 2010-2011 10.1 8.6 10.0 10.9 11.0 CAGR 2007-2011: 2.1% Number of HNWIs Worldwide (Million) 3.1 3.3 2.8 2.7 2.4 3.1 3.4 3.3 3.4 3.4 0.4 0.4 0.1 2.6 3.0 3.0 3.1 3.2 0.4 0.4 0.5 0.4 0.1 0.5 0.4 0.1 0.5 0.5 0.1 0.1 FIGURE 1. HNWI Population, 2007 – 2011 (by Region) (Million) Note: Chart numbers and quoted percentages may not add up due to rounding Source: Capgemini Lorenz Curve Analysis, 2012 FIGURE 2. HNWI Wealth Distribution, 2007 – 2011 (by Region) (US$ Trillion) CAGR 2007-2011: 0.8% FIGURE 2. HNWI Wealth Distribution, 2007 – 2011 (by Region) (US$ Trillion) 21.7 k (0.6% of total) 266.0 k 7.9% of the total 3080 k 91.5% of the total 24.5% [$2.8 trillion] 23.8% [$2.7 trillion] 51.8% [$5.9 trillion]
  61. 61. Snippets In  associaeon  with       copyright@aprikot  2012   62 45years or younger Asia-Pacific, 41% of the HNWIs are 50Years China, average age of UHNWI is
  62. 62. Who is the Philippines HNW investor? §  Most HNW individuals are between 31 and 50 years old §  Credit Suisse Reports forecast 38,000 HNWI by 2015. §  The majority of HNW individuals have amassed their fortunes through entrepreneurship. §  Moderate knowledge and a conservative attitude make for a difficult client profile for Wealth Managers. §  Philippines wealth managers must be able to deal with high degrees of financial illiteracy.
  63. 63. www.aprikot.biz - 64 TonyV3112  /  Shujerstock.com    /  *2012  Americas’  topped;  Asia  second.  
  64. 64. HNW – What do they look for ? § HNWI focus on wealth preservation § The preference for a single point of advice and service is strong. § HNWIs perceive their wealth management needs to be “straightforward” (focused on investments, cash, and credit) § The current demand for digital channels is robust globally, especially for HNWIs below 40 years of age. Highlight from the 2013 Global HNW Insight Survey
  65. 65. HNWI Trust & Confidence § Wealth Manager competency emerged as the single largest service priority among HNWIs, with 67.5% rating it as most important. § Asset Allocation: HNWIs exhibited a clear bias toward safety and wealth preservation, allocating nearly 30% of their financial wealth into cash and deposits. Capgemini, RBC Wealth Management, and Scorpio Partnership Global HNW Insights Survey 2013 4,400 HNWI’s : 21 Wealth Markets : 77.2% USD 1–5 mn, 10.2% over 10 mn – excluding primary residence.
  66. 66. Asset Allocation 16 2013 WORLD WEALTH REPORT as their primary focus put 26.4% of their assets into cash, only slightly less than HNWIs primarily focused on capital preservation who put 29.7% of their assets in cash. regulatory velocity, and creating service interruptions due to a lack of jurisdictional regulatory alignment. In Europe and North America, where the regulatory change is FIGURE 12. Breakdown of HNWI Financial Assets, Q1 2013 (%) 0% 25% 50% 75% 100% Middle East & Africa Latin America EuropeJapanAsia-Pacific excl. Japan Asia-Pacific North America Global Cash/Deposits Equities Real Estateb Fixed Income Alternative Investmentsa 28.2% 26.1% 20.0% 15.7% 10.1% 21.3% 37.2% 13.5% 18.7% 9.3% 22.7% 22.3% 24.6% 16.7% 13.7% 49.4% 22.6% 11.9% 9.2% 7.0% 27.3% 21.5% 26.7% 15.3% 9.1% 27.6% 12.5% 30.1% 16.8% 13.1% 26.0% 17.0% 24.7% 16.0% 16.3% FIGURE 12. Breakdown of HNWI Financial Assets (%) a Includes structured products, hedge funds, derivatives, foreign currency, commodities, private equity b Excludes Primary Residence Note: Chart numbers may not add up to 100% due to rounding Source: Capgemini, RBC Wealth Management, and Scorpio Partnership Global HNW Insights Survey 2013
  67. 67. Allocation to Investment of Passion
  68. 68. HNWI Behaviors & Preferences, Q1 2013 FIGURE 15. HNWI Behaviors and Preferences, Q1 2013 (%) Single Firm I prefer to work with a single wealth management firm that can meet the full range of my financial needs HNWI Preferred Wealth Management Approach Preferred Wealth Manager Relationship 42.1% 22.8% 41.4% 14.4% 35.1% 35.0% 22.9%42.1% 32.7% 26.3%41.0% 32.2% 27.1%40.7% 34.0% 23.5%42.4% 33.9% 26.9%39.1% 44.2% Straightforward Needs My wealth needs are straightforward: I want to manage my cash and credit, and grow my investments Wealth Preservation I am currently most focused on preserving my wealth Personal Wealth Advice I seek advice and solutions for my own personal wealth needs Financial and Life Goals Measurement I judge the success of my portfolio based on my own financial and life goals (i.e. on an absolute basis) Multiple Firms I prefer to work with various wealth management firms who each have a specific area of expertise that meets my needs Complex Needs My wealth needs are complex and may encompass my business, or my extended family or philanthropy Wealth Growth I am currently most focused on growing my wealth Family Wealth Advice I seek advice and solutions for the wealth needs of my extended family Financial Benchmark Measurement I judge the success of my portfolio, by comparing it to financial market performance and benchmarks (i.e. on a relative basis) Self-Managed Investments I rarely seek professional financial advice because I prefer to make my own decisions Single Touch Point I want a single touch point with one individual who facilitates all aspects of my relationship with the firm Professional Advice I seek professional advice and I usually act on it Multiple Experts I only want to speak to the different experts at my wealth management firm who can deal with my specific requirements FIGURE 15. HNWI Behaviors and Preferences, Q1 2013 (%) HNWI Preferred Wealth Manager Service 34.0% 23.5%42.4% 33.9% 26.9%39.1% 28.4% 27.8%43.8% 44.5% 20.0%35.6% 30.7% 23.7%45.6% 30.9% 26.0%43.1% 26.8% 26.0%47.2% Self-Managed Investments I rarely seek professional financial advice because I prefer to make my own decisions Single Touch Point I want a single touch point with one individual who facilitates all aspects of my relationship with the firm Uncomfortable With Mostly In-house Products I am uncomfortable when my wealth manager recommends mostly in-house products to meet my needs Direct Contact Overall, direct, personal contact is more important than digital contact (internet, mobile, email) Real-Time / Anytime Reporting It is important for me to be able to see how my savings and investments are doing at any time Comprehensive Communication I want my wealth manager to keep me fully updated on transactions, opportunities, events, and news Standardized Services I am happy for my wealth manager to offer a standardized level of service to me, so long as it meets all my needs Digital Contact Overall, digital contact (internet, mobile, email) is more important than direct, personal contact Scheduled Reporting It is most important for me to receive written reports at agreed-upon points in the year Filtered Communication I want my wealth manager to filter communications so I only receive what is necessary Customized Services To ensure all my needs are met, I am happy to pay more for a customized level of service from my wealth manager Professional Advice I seek professional advice and I usually act on it Multiple Experts I only want to speak to the different experts at my wealth management firm who can deal with my specific requirements Comfortable With Mostly In-house Products I am comfortable that my wealth manager’s own range of in-house products is adequate for most of my needs Strong Preference for Parameters on Left No Strong Preference Strong Preference for Parameters on Right Note: Chart numbers may not add up to 100% due to rounding Source: Capgemini, RBC Wealth Management, and Scorpio Partnership Global HNW Insights Survey 2013
  69. 69. Focus on 
 Wealth Growth vs Wealth Preservation years – the MSCI World Index grew by 6.9% annually compared to their counterparts in emerging markets. FIGURE 16. Focus on Wealth Growth vs. Wealth Preservation, Q1 2013 (%) 0% 25% 50% 75% 100% Middle East and Africa Latin AmericaAsia-Pacific (excl. Japan) JapanEuropeNorth AmericaGlobal Wealth Preservers Wealth Growers No Strong Preference 26.3% 41.0% 32.7% 27.7% 39.6% 32.6% 23.3% 44.2% 32.5% 15.3% 60.4% 24.3% 31.5% 29.6% 38.9% 37.7% 18.4% 43.9% 42.4% 24.9% 32.7% Asia-Pacific FIGURE 16. Focus on Wealth Growth vs. Wealth Preservation, Q1 2013 (%) Note: Question asked on a 10-point spectrum: Please indicate your focus on growing your wealth vs. preserving your wealth? “Wealth Preservers” and “Wealth Growers” are percentage of respondents providing a top three rating across the spectrum extremes for wealth preservation focus vs. wealth growth focus; “No Strong Preference” are the remaining percentage o respondents with responses near the mid-point on the spectrum Chart numbers may not add up to 100% due to rounding Source: Capgemini, RBC Wealth Management, and Scorpio Partnership Global HNW Insights Survey 2013 years – the MSCI World Index grew by 6.9% annually compared to their counterparts in emerging markets. FIGURE 16. Focus on Wealth Growth vs. Wealth Preservation, Q1 2013 (%) 0% 25% 50% 75% 100% Middle East and Africa Latin AmericaAsia-Pacific (excl. Japan) JapanEuropeNorth AmericaGlobal Wealth Preservers Wealth Growers No Strong Preference 26.3% 41.0% 32.7% 27.7% 39.6% 32.6% 23.3% 44.2% 32.5% 15.3% 60.4% 24.3% 31.5% 29.6% 38.9% 37.7% 18.4% 43.9% 42.4% 24.9% 32.7% Asia-Pacific FIGURE 16. Focus on Wealth Growth vs. Wealth Preservation, Q1 2013 (%) Note: Question asked on a 10-point spectrum: Please indicate your focus on growing your wealth vs. preserving your wealth? “Wealth Preservers” and “Wealth Growers” are percentage of respondents providing a top three rating across the spectrum extremes for wealth preservation focus vs. wealth growth focus; “No Strong Preference” are the remaining percentage o respondents with responses near the mid-point on the spectrum Chart numbers may not add up to 100% due to rounding Source: Capgemini, RBC Wealth Management, and Scorpio Partnership Global HNW Insights Survey 2013 The majority of reference for lecting an rategies and of 49.4%. the focus f robust last three 9% annually only 22.9% prefer to use relative benchmark returns to evaluate success. Measuring wealth performance on an absolute basis was of particular importance among HNWIs in higher wealth segments. Of HNWIs with US$20 million and above, 44.3% prefer an absolute measure. Interestingly, on a regional basis, HNWIs in mature markets were considerably less likely to use an absolute measure compared to their counterparts in emerging markets. vs. Wealth Preservation, Q1 2013 Wealth Preservers Wealth Growers No Strong Preference 3% 2% 5% 15.3% 60.4% 24.3% 31.5% 29.6% 38.9% 37.7% 18.4% 43.9% 42.4% 24.9% 32.7% th Preservation, Q1 2013 d not show a strong preference for eservation, perhaps reflecting an owards their wealth strategies and and deposit holdings of 49.4%. erences also reflected the focus on. Even in the face of robust uity markets over the last three World Index grew by 6.9% annually Measuring wealth performance on an absolute basis was of particular importance among HNWIs in higher wealth segments. Of HNWIs with US$20 million and above, 44.3% prefer an absolute measure. Interestingly, on a regional basis, HNWIs in mature markets were considerably less likely to use an absolute measure compared to their counterparts in emerging markets. on Wealth Growth vs. Wealth Preservation, Q1 2013 Middle EastLatin AmericaAsia-Pacific JapanEuropeNorth America Wealth Preservers Wealth Growers No Strong Preference 27.7% 39.6% 32.6% 23.3% 44.2% 32.5% 15.3% 60.4% 24.3% 31.5% 29.6% 38.9% 37.7% 18.4% 43.9% 42.4% 24.9% 32.7% Wealth Growth vs. Wealth Preservation, Q1 2013 n home. Thirty-five percent of HNWIs now prefer e their portfolio using such absolute measures, while 2.9% prefer to use relative benchmark returns to e success. ring wealth performance on an absolute basis particular importance among HNWIs in higher segments. Of HNWIs with US$20 million and 44.3% prefer an absolute measure. Interestingly, gional basis, HNWIs in mature markets were erably less likely to use an absolute measure red to their counterparts in emerging markets. Q1 2013 Wealth Preservers Wealth Growers No Strong Preference 37.7% 18.4% 43.9% 42.4% 24.9%
  70. 70. Competency Single point Wealth preservation Wealth advice So,  what  are  HNWI  looking  for    
  71. 71. WEALTH MANAGEMENT What is a
  72. 72. .. more than investment advice, encompass person's financial life
  73. 73. WHY Wealth Manager? The  Asia-­‐Pacific  HNWI  populaeon  grew  9.7%  to  3.3  million  in  2010,   exceeding  Europe  and  nearing  North  America.       The  region’s  HNWI  wealth  grew  12.1%  to  US$10.8  trillion.  Japan  remains  the   single  largest  HNW  segment  in  Asia-­‐Pacific,  accouneng  for  52.5%  of  the   region’s  HNWIs,  followed  by  China  (16.1%),  and  Australia  (5.8%).       Asia-­‐Pacific  is  home  to  many  of  the  world’s  fastest-­‐growing  HNWI   populaeons.  The  20  fastest-­‐growing  HNWI  populaeons  were  in  Asia-­‐Pacific   and  MEANA  markets.  
  74. 74. Wealth Manager? …..  consetutes  unique  job  tasks  and  specialized   knowledge  and  skills  different  from  financial  planning   and  designed  to  serve  a  unique  type  of  client:  those   who  are  affluent  and  High  Net  worth  client.       Where  you  relaeonship  is  based  on  professional  TRUST.  
  75. 75. COMPETENCY STANDARDS for Wealth Managers A wealth manager’s competencies are encompassed into three distinct layers – §  Build trusted relationship – client relationships that result in a successful partnership. §  Realistic Goals - recommendations leading to the creation and implementation of a comprehensive whole-life wealth management plan. §  Wealth Accumulation - implement wealth accumulation by managing strategies and monitoring developments. §  Wealth Preservation – preserve and optimize wealth by managing an optimal strategy of generating income from assets. §  Wealth Transfer - Legacy and Estate planning - implement strategies to transfer assets as per the legacy plan of the client. §  Implement & Monitor – Coordinate a trusted and respected team of specialists to provide a well- rounded wealth management advice and service to the client. To achieve the client centric competencies, Wealth Manager must have the necessary knowledge and skills of wealth planning, products, services, legal & compliance, capital markets and the Industry.
  76. 76. T = R + I + C S.I.
  77. 77. Customers Expectations www.aprikot.biz - 78 Excellent Customer Service! Transparency! Objective Advice! Professional Competency!
  78. 78. www.aprikot.biz - 79 ProfessionalCompetence ObjectiveandQualityAdvice Excellent Customer Service Transparency Wealth Advisor / Manager § Certification § ResearchandHouseview § UnderstandingPortfolio § Systematicprocess- § Independentinvestment § Consistency § Regular customer contact § Customer reporting § Disclosures
  79. 79. 4W www.aprikot.biz - 80 A framework to find solutions for the client’s needs. Deals with diverse goals and unique individual preferences. Growing the wealth in optimal ways while observing the client’s risk-tolerance profile or desired targets. Maintain wealth through insulating it from market shocks or dangers with appropriate risk-management techniques. Figuring out the best ways to transfer wealth to the client’s heirs or beneficiaries. Takes into account any tax implications and philanthropy but also needs to considers social and cultural value. Wealth Management! Wealth Accumulation ! Wealth transfer! Wealth Preservation!
  80. 80. In  today’s  context,  what  is  wealth  management?   §  “Wealth  Management  addresses  every  aspect  of  a  client’s  financial  life  in  a   consultaeve  and  a  highly  individualisec  way.   §   It  uses  a  complete  range  of  products,  services  and  strategies.       §  A  wealth  manager  has  to  gather  informaeon  both  financial  and  personal  to   create  an  individualized  series  of  recommendaeons  and  be  able  to  make  those   recommendaeons  completely  tailored  to  each  client.       §  Off  the  shelf  –  it  won’t  do.       §  What  wealth  management  requires  is  conneceng  with  clients  on  a  personal   level  that  is  way  beyond  the  retail  financial  services  industry  norm”     Robert  J  McCann,  President  of  the  Private  Client  Group,  Merrill  Lynch  
  81. 81. Advisory Process Investment Advisory Process Risk Profiling Recommend the portfolio Execute transactions Rebalanci ng Reporting; transparency Goals & Objectives Review; Rebalance, if required 1   2   3   4   5   6  
  82. 82. Next Generation Financial Advisor, must take on the role as a Wealth Manager The next generation wealth manager has a lot more on his or her plate. That means: §  moving away from a product-centric to customer-centric focus §  to be the primary financial relationship based on a bond of trust, and the ability to deliver client-focused solutions and options. §  delivering a quality customer experience at every touch point §  offering better reporting, more frequent updates to keep clients informed in real-time, using various forms of technology §  being the bridge between the client, the specialists within your firm and the back office to create a seamless flow of excellence §  in a multi-racial environment, having the high-touch soft skills while remaining sensitive to the demands of different cultures §  dealing with newly emerging needs for succession planning requires a different set of skills.
  83. 83. Calling all Insurance Advisors Two problems: 1.  High Net Worth Clients - The banking model with Wealth Managers & Specialist functions, will lure away your HNW clients, gradually. 2.  Retail Clients. The technology companies will lure away your retail clients by offering them better pricing and technology driven quality service. What about personalized Service? Some services don’t require personalized service – technology driven consistency in service serves the client better. Example – Car Insurance, why will one need personalized service? Or ATM Vs Teller, www.aprikot.biz - 84
  84. 84. New Insurance Landscape §  Regulators world-wide are taking action to ensure customers get better and more professional financial advisory services. §  The focus cannot just be on sales, but rather on ongoing quality advice and remunerating people who can provide this. §  The required skills and knowledge which tomorrows insurance adviser is expected to have, in particular: §  a wider scope and greater in-depth of product knowledge – not limited to life insurance products; §  more effective communication skills to translate some of the technical terms to layman’s language fro better understanding; and §  Excellent interpersonal skills to enhance consumer trust www.aprikot.biz - 85
  85. 85. New Insurance Landscape “rather than training being focused on products, as in the past, it needs to be more broad based, focus on clients needs. It is then possible to select the right products to meet these needs” www.aprikot.biz - 86
  86. 86. THANK YOU www.aprikot.biz - 87

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